CARLISLE PLACE HOMEOWNERS ASSOCIATION, INC. RESOLUTION OF THE BOARD OF DIRECTORS This resolution is made on the date set forth below by the Board of Directors (the Board ) for the Carlisle Place Homeowners Association, Inc. ( Association ). RECITALS A. Real property in Salt Lake County, Utah, knows as Carlisle Place Subdivision, was subjected to covenants, conditions, and restrictions pursuant to a Declaration of Covenants, Conditions and Restrictions (the Declaration ); B. Pursuant to Utah Code 57-8a-309, the Association has the right to terminate both an Owner s receipt of utility services paid for with common assessments and right to access and use recreational facilities for nonpayment of assessments; C. Pursuant to Utah Code 57-8a-310, the Association has the right to collect rents from a lot Owner s tenant for nonpayment of assessments; D. Pursuant to Utah Code 57-8a-208 the Association has the right to assess fines against an Owner for violating the Association s governing documents; E. Pursuant to the above-referenced codes, the Board desires to set forth procedures for the collection of rents and termination of services for nonpayment of assessments, the assessing of fines for violations, and the hearing procedures used for hearings requested by Owners; F. This Resolution was properly adopted by the necessary vote of the Board in compliance with the provisions of the Association Bylaws; NOW BE IT RESOLVED: 1. Termination of Utilities and Access to Recreational Facilities. If any assessment remains unpaid by an Owner for more than 30 days from the due date for its payment, the Board or its agent may use the following process to terminate the delinquent Owner s utility services and access to any community recreational facilities that are paid for as a common expense with Association assessments: a. Before terminating utility services or right of access to recreational facilities, the Board or its agent shall give the delinquent Owner notice, which shall state: (i) The amount of the assessments due, including any interest, late fees, collection costs and attorney fees; (ii) that the Association will terminate the Owner s utility services and right of access to recreational facilities if the Association does not receive payment of the delinquent balance within 14 days after receipt of the notice; (ii) that within 14 days after receipt of the notice, the Owner has the
right to submit a written request for an informal hearing before the Board to dispute the amounts owed; (iv) that the delinquent Owner will be responsible for any costs associated with terminating or reinstating the utility service; and (v) the estimated cost of terminating and/or reinstating the utility service. b. If an Owner requests a hearing, the Association may not terminate a utility service or right of access to recreational facilities until after the Board conducts the hearing and enters a final decision. c. If the Association terminates a utility service or right of access to recreational facilities, the Association shall take immediate action to reinstate the service or access following the Owner s full payment of the delinquent balance. d. The delinquent Owner will be responsible for paying the costs associated with reinstating a utility service that the Association terminates pursuant to this Resolution. The Association may demand that the estimated cost to reinstate the utility service is paid before the service is reinstated. 2. Collection of Rents. If any assessment remains unpaid by an Owner for more than 60 days from the due date for its payment, the Board or its agent may use the following process to demand that an Owner s tenant(s) pay all future rent payments to the Association until the past due assessments are paid current: a. Written notice must first be given to the Owner that the Association intends to collect rents from the Owner s tenant(s). This notice shall state the following: (i) The amount of the assessments due, including any interest, late fees, collection costs and attorney fees; (ii) that any costs of collection, including attorney fees, and other assessments that become due may be added to the total amount due to be paid through the collection of rent payments; and (iii) that the Association intends to demand payment of future rent payments from the Owner s tenant(s) if the Owner does not pay the amount owing within 15 days. b. If an Owner fails to pay the amount owing within 15 days after the Board gives the Owner the notice described above, the Board or manager may exercise the rights of the Association by delivering a written notice to the Owner s tenant(s). A copy of this notice shall also be mailed to the Owner. This notice shall state the following: (i) Due to the Owner s failure to pay an assessment within the required time, the Board or manager has notified the Owner of the Board s intent to collect all rent payments until the amount owing by the Owner is paid; (ii) that pursuant Utah Code Section 57-8a-310:
(a) the tenant s payment of rent to the Association does not constitute a default under the terms of the lease with the Owner ; (b) the tenant is now required to pay the Association all future rent payments as they become due and owing to the Owner, until the Association notifies the tenant(s) that the amount owing is paid; (c) the Owner is required to credit each payment made by the tenant(s) to the Association against any obligation that the tenant(s) owes to the Owner as though the tenant made the payment to the Owner; (d) the Owner may not initiate a suit or other action against the tenant(s) for failure to make rent payments that the tenant(s) pays to the Association; (e) that within 5 business days after the amount owing is paid, the Board or manager will notify the tenant(s) in writing that the tenant(s) is no longer required to pay future rent payments to the Association. c. The Association may add the administrative costs incurred in enforcing this resolution to the Owner s account in an amount not to exceed $25.00. 3. Fining for Violations. The Board may enforce the Declaration, Bylaws, and rules and regulations by assessing fines as follows: a. Any violation of the Declaration, rules and regulations, and Bylaws shall be subject to a fine. b. The following procedures will be followed prior to levying a fine: (i) All Owners will be given a written notice of a violation, which notice shall include the following: (a) a description of the violation; (b) a statement of the rule or provision of the Association s governing documents that the lot Owner s conduct violates, (c) a statement that the Board, in accordance with this resolution and Utah Code 57-8a-208, may assess fines against the Owner if a continuing violation is not cured or if the Owner commits similar violations within one year after the day on which the Board gives the Owner written warning or assesses a fine against the Owner under Utah Code 57-8a-208 or this resolution; and (d) if the violation is a continuing violation, states the time after the Board gives notice during which the Owner must cure the violation without incurring a fine. (ii) All violations are considered non-continuing violations. If after receipt of the notice of violation an Owner commits another similar violation, no additional notice need be given prior to fining for the offense. Such fining may occur any time within one year after the initial offense. (iii) If a violation is not cured within 48 hours of receipt of the initial notice of violation, it becomes a continuing violation. As such, the Board may assess a fine for
the failure to cure the violation within 48 hours, plus a fine will be added every 10 days without further notice until the violation has been cured. In the event that the violation is of such a nature that a complete cure would take longer than 4 hours to complete (e.g. violation of architectural guidelines), Owners will be given 48 hours to provide proof that they have commenced a cure within the 48 hours. Any similar continuing violation committed within one year of the initial notice of violation shall be subject to a fine without further notice. c. Unless otherwise specified in the rules or Declaration, the Association shall adhere to the following schedule of fines: (i) Warning for a first violation; (ii) $100.00 for a second violation or failure to cure a continuing violation within 48 hours after warning; (iii) $200.00 for a third similar violation or failure to cure a continuing violation within 10 days from the first fine; (iv) $500.00 for a fourth or subsequent similar violation or failure to cure a continuing violation within 10 days from the second or subsequent fines. Enforcement remedies are cumulative; accordingly, the Board reserves its right to pursue any enforcement action authorized by law or the Declaration at any time during the fining process. d. If a fine is levied, the offending Owner shall have the right to request an informal hearing with the Board to protest or dispute the fine. A request for a hearing must be made in writing within 30 calendar days from the date notice of the fine is received. If a request for hearing is not received by the Board, or their designated agent, within 30 calendar days from the date notice of the fine is received, the fine shall be deemed to be uncontested and the Owner forfeits their right to hearing. A request for hearing shall be delivered to the Association manager or a Board member. The hearing shall be conducted in accordance with the procedures adopted by the Board. An Owner who fails to timely request a hearing may also contest the fine by initiating a civil action within 180 calendar days after the expiration of the 30 calendar day period. e. Pursuant to Utah Code Ann. 57-8a-208, fines shall be collected in the same manner as past due assessments. Interest and late fees shall accrue on unpaid fines in the same manner as past due assessments. 4. Informal Hearing Procedures. The following procedures shall govern an informal hearing of the Board. a. To request a hearing, an Owner must submit a written request to the Board within the timeframe identified above. The hearing shall, within reason, be conducted at the first Board meeting after the receipt of the request. The Board shall give notice of the date, time, and location of the hearing to the requesting Owner. Notice of the hearing shall be delivered to the requesting Owner and, if necessary, to the complaining Owner by electronic means, USPS firstclass mail, postage prepaid, or by hand delivery. No other Owners or parties shall be entitled to
notice of the hearing. If the hearing date is unacceptable to the requesting Owner, they may request one continuance of the hearing date. To request a continuance, the requesting Owner shall deliver a written request for continuance to the Association. The request must be received by the Association at least five calendar days prior to the original hearing date. The request must contain a valid cause for continuance. The Board has sole authority to determine what constitutes valid cause. If the Board continues the hearing, the continued hearing shall, within reason, take place at the second Board meeting after the receipt of the original request for hearing. Failure by a requesting Owner to appear at a hearing or continued hearing shall result in a waiver of the requesting Owner s right to hearing and the enforcement action shall be deemed uncontested. b. The hearing shall be conducted by one or more Board members. The requesting Owner shall be given 15 minutes to dispute the issue for which the hearing was requested. The requesting Owner may present documentation or witnesses to dispute the issue. The Board may question the requesting Owner or witnesses during the hearing. If the request for hearing is based on the complaint of neighboring Owners, the Board shall interview or review written statements from the neighboring Owners during the hearing. After hearing the requesting Owner s position and evidence, the Board may either render its decision at the hearing or take the evidence and argument under advisement. If the Board takes the evidence under advisement, they shall render a final decision by the next scheduled regular Board meeting. Once a decision is rendered, the Board shall give written notice of their decision to the requesting Owner. All decisions are final, with the exception of a hearing to contest a fine, which may be appealed by filing a civil action within 180 calendar days of the final decision. 5. Receipt of Notice. All notices sent out pursuant to this resolution are deemed received by Owner 3 calendar days after which the notice was posted and placed in a U.S. mail receptacle by the Association or its agent. If notice is sent via electronic means, the notice is deemed received by Owner the same day it is sent by the Association.